Asian shares displayed mixed performance on Tuesday as investors awaited Nvidia's earnings report, a key indicator for the tech sector's growth. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1%, while Japan's Nikkei reversed losses to trade 0.3% higher. South Korea's Kospi dipped 0.2%, China's CSI300 blue-chip index was down 0.2%, and Hong Kong's Hang Seng Index eased 0.3%.
Oil prices saw slight changes after falling more than 2% in the previous session. Brent crude futures were down 0.04% at $92.13 a barrel, while U.S. crude edged 0.1% higher to $85.08 per barrel. The drop in oil prices was attributed to the U.S. easing threats of sanctions on Iran, which had previously driven up prices due to concerns over the Strait of Hormuz. The decline in oil prices also helped to alleviate concerns about inflation.
Investors are particularly focused on Nvidia's results, with analysts expecting quarterly revenue to almost double to around $92 billion and full-year earnings guidance in the range of $103 billion to $105 billion. Fabien Yip, a market analyst at IG, noted that these are "really high expectations." There is also concern about the sustainability of Nvidia's growth and whether it is powered by "circular deals." Tech sentiment was also dampened by Alibaba's $10.2 billion share sale to fund AI ambitions and disappointment over Samsung Electronics' shareholder-return plan.
In the U.S., Nasdaq futures advanced 0.36%, and S&P 500 futures were up 0.1%. European markets were largely flat or slightly down, with EUROSTOXX 50 futures edging 0.2% lower, FTSE futures flat, and DAX futures adding 0.13%. The market is also looking ahead to comments from Federal Reserve boss Kevin Warsh at the Jackson Hole symposium, which could clarify the Fed's stance on monetary policy and inflation targets.
